Board Diversity and Financial Performance of Oil and Gas Firms Listed in the Nigerian Exchange Group

ABSTRACT: This study investigated how board diversity affects the financial performance of oil and gas firms listed on the Nigerian Exchange Group using a panel data regression approach. Data covering a decade (2014–2023) were collected from the financial statements of listed companies under study. The Hausman test was used to choose between fixed and random effects models. The results revealed that gender, age, nationality, and tenure diversity showed statistically insignificant relationships with ROA and ROE, while educational and professional diversity negatively affected ROE and EPS significantly. However, tenure diversity demonstrated a significant positive relationship with EPS. The study concluded that while diversity is essential, excessive diversity in educational and professional backgrounds can hinder financial performance, whereas tenure diversity positively influences earnings and recommended the adoption of a strategic approach to board diversity, ensuring alignment with organizational goals, and leveraging tenure diversity's benefits to enhance shareholder value.